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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

A) In the methods and processes used to make pay decisions
B) In the details of their individual compensation packages
C) In the overall program objectives
D) In the differences in pay levels for the different levels of the organization

2. To qualify for the executive exemption from the minimum wage and overtime provisions of the FLSA, among other things what must an employee do?

A) Customarily and regularly direct the work of at least two full-time employees
B) Perform work that is intellectual and varied
C) Devote less than 15% of his/her time to nonexempt work
D) Possess knowledge of an advanced type in business administration

3. Which of the following agencies enforces the FLSA?

A) Department of Labor
B) Office of Federal Contract Compliance Programs
C) Equal Employment Opportunity Commission
D) National Labor Relations Board

4. What statement is most accurate regarding communication of compensation information?

A) The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.
B) Compensation terms are well-known and easily understood by most stakeholders.
C) Compensation professionals should anticipate the level of the audience and tailor messages to their needs.
D) Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.

5. What best describes the primary purpose of budgeting?

A) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
B) Limiting spending to a fixed percentage of organizational revenue
C) Making choices about spending based on expectations of performance
D) Increasing profitability of the business annually to maximize shareholder/owner value

Solutions: